Bangkok, 9 June 2020 – SEC has published the results of regulatory mapping with regard to the listing regulations in Thailand and Luxembourg and is ready to support qualified Thai companies in having their sustainable bonds displayed on Luxembourg Green Exchange (LGX) and listed on Luxembourg Stock Exchange (LuxSE). The move may start from registration in Securities Official Listing (SoL) whose listing criteria are relatively more relaxed.
Earlier,
the SEC Management led by Secretary-General Ruenvadee Suwanmongkol had a
meeting with Mr. Robert Scharle, CEO of LuxSE, and executives on 31 January
2020 to discuss and share experiences in establishing a sustainable bond data
platform as well as to explore the possibility of displaying Thai sustainable bonds
(Green Bond, Social Bonds and Sustainability Bonds) on LGX, a platform exclusively
for green, social and sustainable securities, to allow global investors a
convenient information access to such products and attract foreign investments
to Thailand.
Following
the meeting, SEC has studied and conducted a regulatory mapping between
Thailand and Luxembourg to support Thai companies that are ready for listing
overseas. The study shows that Thai debt securities issuers can apply for securities
listing on any of the three exchanges of LuxSE, namely (1) Bourse
de Luxembourg (BdL), whose criteria are as stringent as the regulations
governing public offering of corporate bonds, (2) Euro Multilateral Trading
Facility (MTF), whose criteria are as relaxed as the regulations governing an offering
of corporate bonds to high net worth investors, and (3) Securities Official
List (SoL), whose criteria are the most relaxed and relatively compatible to
the regulations governing securities offering to institutional investors.
“BdL and MTF support bond trading while SoL is a platform for bond
profile listing whereby investors interested in trading securities must execute
transactions on the Thai Bond Market. Interested and well-prepared companies
may apply for listing on these exchanges to have their debt securities displayed
on LGX platform, in which case translation of prospectus and opinions of legal
advisors is required. This may start from listing on SoL whose criteria are relatively
more relaxed, and the expenses do not cause excessive burdens on the issuers.
Companies capable of complying with the regulations may choose to be listed and
traded on BdL or EuroMTF directly,” said Ms. Ruenvadee.
In
this regard, SEC is ready to support and reduce burdens on interested Thai debt
issuers from both the public and private sectors. For starters, SEC will
publish a LuxSE listing guidelines and communicate to debt issuers, and cooperate
with LuxSE in providing in-depth knowledge and answering further questions.
LGX is the world’s first green exchange which provides
comprehensive information on sustainable debt securities and mutual funds from
various countries. Launched in 2016, LGX has become well recognized and successful.
Currently, LGX displays more than 50 percent of listed sustainable bonds
worldwide, including Asian bonds issuers from Japan, China and Hong Kong.
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